During FY 88 the Army contributed notably to the major
national security objectives of the U.S. For example, it assisted America's
allies and friends in defending themselves against coercion and aggression.
Combat aviation and support forces participated in Central Command operations in
the Persian Gulf. Army helicopter crews performed both reconnaissance and attack
missions. Of the allied forces present, they detected first that the Iranians
were laying mines at night in international waters. Army helicopter crews
successfully attacked the Iranian ship Ajar and repelled numerous attacks by
Iranian gunboats. In another case, in March 1988 the president of Honduras
solicited assistance from the Reagan administration in repelling some 2,000
Nicaraguan Sandinista troops intent upon seizing a large Contra supply depot in
Honduras. The JCS created a joint task force for deployment to Honduras named
Operation GOLDEN PHEASANT. Primary ground troops consisted of two battalions
from the 82d Airborne Division and two from the 7th Infantry Division (Light).
Their reinforcement of Honduran defenses pressured the Sandinistas to abandon
their intended incursion without significant armed contact.

Although it received less publicity than the Persian Gulf and
Honduran operations, the Army's military security assistance program continued
to provide valuable materiel, services, and training to allied and friendly
countries during FY 88. Some 8,800 foreign students received training in CONUS
Army facilities, while 215 Army security assistance teams provided technical
services and training to foreign military personnel in 34 countries. During FY
88 the Army contributed directly to another major American national security
objective, the pursuit and verification of equitable arms reduction agreements.
President Reagan and Soviet General Secretary Gorbachev ratified the
Intermediate-Range Nuclear Forces (INF) Treaty in June 1988, which eliminated
Soviet and U.S. nuclear weapons with a delivery range of 300 to 3,400 miles. The
Defense Department created the On-Site Inspection Agency (OSIA) to inspect
destruction of Soviet missiles and to facilitate

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inspection by the Soviets of U.S. missile destruction both in
the U.S. and Western Europe. The OSIA, an interagency organization, acquired an
Army brigadier general as director and a contingent of Army personnel among its
300-person staff. Both OSIA personnel and their Soviet counterparts began
inspections in the summer of 1988 which will continue, according to a specified
schedule, throughout the thirteen-year life of the INF Treaty.

The budget reductions of the mid-1980s continued during FY
88, and the Army again set strict priorities for its programs. It emphasized
essential force combat readiness exemplified by able and well-trained personnel
assigned to forward-deployed and quickly deployable units headed by thoroughly
prepared leaders. The Army leadership decided to concentrate on the CINCs'
priority requirements, to terminate marginal programs, to slow the pace of
modernization, and to minimize the impact of tight money upon force structure.
It asked for a $79 billion budget but got about $3 billion less. Army officials
then encountered money problems with the foreign currency exchange rate,
underfunding by Congress for a civilian employee pay raise and CHAMPUS costs,
and unexpected price increases in civilian health benefit payments and GSA goods
and services. The Deputy Secretary of Defense sought to relieve the money
problems in mid-FY 88 with such measures as a restriction on routine
maintenance, a freeze on civilian hiring, a halt to civilian overtime pay for
hourly workers, and deferral of some supply and equipment purchases. Primary
relief came to the Army late in FY 88 when Congress lifted an earlier
prohibition against transferring funds in long-term procurement accounts to
cover current year operations and maintenance expenses.

The Army fared well in its recruitment of able personnel in
FY 88 but suffered strength losses detrimental to its force structure design.
Budget constraints reduced its active component enlisted personnel recruiting
goal from 131,000 to about 115,000; however, non-prior service recruits exceeded
Army quality goals with a 93 percent high school graduate rate, 66 percent with
test scores in categories I-IIIA,and only 4 percent in category IV.
Money problems and congressional strength limits required a 20,300 active
component and civilian employee reduction-2,330 commissioned officers, 170
warrant officers, 6,170 enlisted soldiers, and 11,690 civilians. The FY 87
Defense Authorization Act, which required the armed services to reduce their
commissioned officer strengths (grades of CW2 through 010) by 6 percent within
three years, influenced the 20,300 person cut. Concerted efforts by Army and
other spokesmen, however, persuaded Congress to reduce the

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Army commissioned officer strength cut required by this
legislation from 6 to less than 4 percent, or from more than 6,000 to about
4,000.

In response to requirements of the 1986 Defense Department
Reorganization Act for creation of joint duty programs, the Army created 3,025
field grade and 94 general officer joint duty assignments. The Defense
Department and the Army successfully persuaded Congress to reduce its tour
length requirements. For promotion eligibility to general officer, field grade
officers must serve 3 years rather than 3.5, while general officers must serve 2
years rather than 3 for promotion eligibility. Budget constraints and personnel
reductions resulted in active component unit design changes in FY 88. An interim
design inactivated the 2d Brigade of the 9th Infantry Division (Motorized) and
replaced it with a Roundout unit, the 81st Separate Infantry Brigade (Heavy) of
the Washington National Guard. The Army canceled activation of two infantry
battalions intended for the 6th Infantry Division (Light). Most of the plans for
changes in the command and status of units and acquisition of converted
helicopters for Special Operations Forces did not materialize during FY 88. The
Army Reserve, on the other hand, increased its force structure. It added to its
aviation force with two assault helicopter battalions, an attack helicopter
battalion, a combat aviation battalion, and several aviation headquarters and
support units.

Other noteworthy Army staffing developments occurred during
FY88. In cooperation with the recommendations of the Defense Department Task
Force on Women in the Military, the Army reaffirmed its sexual harassment
prevention program. Following a reassessment of its Direct Combat Probability
Coding System, the Army opened 11,138 positions for female military
personnel-3,128 active component, 6,274 National Guard, and 1,736 Army Reserve.
The Army's civilian work force numbered about 418,000 at the start of FY88. The
Civilian Employment Level Plan, which uses a funding rather than a strength
ceiling, programmed a civilian work force of about 400,000. By the end of FY 88,
Army civilian personnel strength had fallen to about 393,000, attributed largely
to the Defense Department's one-for-two hiring freeze implemented during late
May through September. Instituted in FY87 as a part of the Army Civilian
Training, Education, and Development System, the Civilian Leadership Training
Program conducts leadership training for Army civilians at three levels-intern,
supervisor, and manager. Through the close of FY 88 it had trained about 2,200
persons.

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The Chief of Staff supported strongly the development and
improvement of quality of life programs during FY 88, but budget constraints
allowed only modest growth in most of them. The Army reiterated its ongoing
commitment to the Secretary of Defense's policy statement on family support
program development in the armed services. Army officials opened relocation
assistance centers at Fort Benning, Georgia, and Fort Lewis, Washington, in FY
88 to assist both military and civilian personnel. The budget allowed $33
million for construction of thirteen child development facilities at eleven
locations. The Army's alcohol and drug abuse prevention and control program
continued to operate productively at 192 installations worldwide. CHAMPUS users
received modest benefits increases in FY 88. Project Restore allowed Army
hospital commanders to hire civilian medical personnel to expand their health
services. The Defense Department awarded a fixed price contract to a consortium
in California to provide improved and less costly health care to military
dependents and retirees in California and Hawaii. Beginning in October 1987, a
catastrophic cap applied to all CHAMPUS users. Active duty families pay a
maximum of $1,000 a year for covered expenses, while retiree families have a
$10,000 liability

In order to accommodate the housing needs of soldiers and
their families more adequately during FY 88, the Army sought construction of
1,532 new homes in CONUS and 446 in Europe, upgrading 703 substandard dwellings
into 536 adequate ones and leasing 32,741 units in the private sector. Its
housing budget allowed the Army to construct 1,414 new homes in CONUS and 446 in
Europe. Available money financed upgrading of 536 substandard dwellings and
leasing of 36,715. The Army formulated a comprehensive indoor radon measurement
and mitigation program in FY 88. Expected to cost $20-$30 million and to
continue through FY 90, active radon testing of Army facilities began in late
1988. The Army Safety program attained its most favorable results ever in FY 88.
Reductions occurred in every major category of military personnel accidents. The
total number dropped 8 percent from FY 87 with tactical training accidents down
16 percent and accident fatalities down 10 percent. Costs for military personnel
accidents fell 21 percent, but civilian injury compensation costs rose despite a
10 percent drop in the number of claims during the past 5 years.

Training served as the Army theme for 1988, and the Army
leadership reemphasized a three-pronged approach to a productive training
program-individuals, leaders, and units. The Chief of Staff established several
training initiatives during the year. One

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directed that the General Officer Steering Committee would
meet one to two times a year with principals of Headquarters, Department of the
Army, and the major Army commands to discuss training issues. Another initiative
created senior leader training conferences to evaluate unit training at the
combat training centers. Army officials sought active component ground and air
OPTEMPO of 850 miles and 15.8 hours respectively, but tight funding cut these
figures to 725 and 14.5. This reduction, however, did not appreciably alter the
Army's combat readiness. The NCO education system rated very highly on the Chief
of Staff's training priority list and experienced no operational cutbacks. The
Army lacked sufficient slots at joint service schools in FY 88 to meet the
specialized education needs of its joint specialty officers. As an interim
alternative, the Office of the Joint Chiefs of Staff authorized the Army to
conduct the first of a two-phase joint professional military education program
at senior Army colleges.

Substantial progress in the development of the Combat
Training Centers (CTC) program and other training facilities occurred during FY
88. Two CTCs began operations, the joint Readiness Training Center (JRTC) and the
Battle Command Training Program (BCTP). As the Army's new light unit CTC with a
primary maneuver area located at Fort Chaffee, Arkansas, JRTC trained its first
task force in October 1987. Seven task forces rotated through the center during
the year, 6 active component and 1 reserve. With headquarters at the Combined
Arms Center, Fort Leavenworth, Kansas, BCTP conducted its first training session
in January 1988. It provides advanced combat training to corps and division
command staffs with the corps/division battle simulation system. During the year
the 7th, 9th, 24th, and 47th Infantry Divisions underwent BCTP. Congress
supported range modernization by funding eleven firing range projects for the
National Guard. Classes commenced at a new military operations on urbanized
terrain (MOUT) facility at Fort Hood, Texas. During FY 88 construction began on
a MOUT facility at Hohenfels Training Area in West Germany and also the Army's
first aerial gunnery range located at Fort Rucker, Alabama.

The Chief of Staff instructed the Reserve Component Training
Strategy Task Force to create a comprehensive strategy for the future. Members
submitted fifty-two training initiatives, and the Chief of Staff approved their
strategy in principle, implementation of all initiatives without cost, and also
directed them to develop a resourcing plan. The New Jersey National Guard High
Technology Training Center opened at Fort Dix, New Jersey, in October 1987.

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With an impressive array of simulation devices, panel
trainers, and computer graphics systems, it functions as a test bed for
maximizing technology as a training tool. Overseas deployment training (ODT) of
the reserve component continued in FY 88 but at a reduced level-some 45,000
soldiers in 2,536 units/cells compared to 55,000 personnel in 3,364 units/cells
in FY 87. Federal courts upheld the right of the Defense Department to deploy
National Guard units for ODT in suits filed by the governors of Minnesota and
Massachusetts, but Defense Department authorities anticipated further court
appeals. ODT received more positive reviews in other quarters. In response to a
Chief of Staff survey, the warfighting CINCs and Army component commanders spoke
favorably of ODT The Senate Appropriations Committee encouraged the Defense
Department to explore new ODT missions for the reserve component.

Although below the levels preferred by the Army, production and delivery continued during FY 88 for equipment and systems that support close combat; fire support; command, control, and communications; air defense; and other mission areas. Fielding of the Abrams tank, which began in 1981, totaled 5,137 by year's end. Bradley fighting vehicle deliveries totaled 4,041 through November 1988-2,300 basic, 1,371 M2/M3A1s, and 370 M2/M3A2s. Utilizing a combined arms approach, the Army's Armor Anti Armor Modernization Plan is pursuing ways to overcome recent developments in reactive armor and electro-optical countermeasures. Technical improvements to existing antiarmor systems include creation of a digital auto pilot to improve Hellfire missile lethality and development of the TOW 2B missile which can fly over and fire down upon an armored vehicle. Still in the testing stage, the Advanced Antitank Weapon System-Medium, will allow infantrymen to destroy tanks despite poor or restricted visibility and electro-optical countermeasures. Congress expects the Army to build and procure 3,000 MIA2 or Block II Abrams tanks and also to field a Block III tank by the mid-1990s. These armored vehicles will have enhanced survivability and improved target acquisition and fire control equipment.

The multiple launch rocket system (MLRS) will contribute to
the Armor Anti Armor program with a terminal guidance warhead in development
that can destroy enemy armor from above. It will also carry two Army Tactical
Missile System missiles and the Binary Chemical Warhead, which began full-scale
development in July 1988. The Army Aviation Modernization Plan called for
continuing the light helicopter (LHX) program; cooperating with

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Congress in its emphasis upon procurement and technical
improvement of the Army's most efficient existing and special mission aircraft;
and retirement of outdated airframes. Defense Department officials approved the
demonstration/validation phase for the LHX in FY 88 for early FY 89. The LHX
will perform armed reconnaissance and light attack missions and complement the
larger and more powerful AH-64 Apache. Procurement and technical improvement
proceeded during FY 88, although on a reduced scale, for the AH-64 Apache, UH-60 Black Hawk, OH-58D AHIP, CH-4'7DChinook, and other special mission
aircraft. Aircraft scheduled for retirement included the AH-1 Cobra, CH-54 Tarhe,
OH-58 Kiowa series, UH-1 Huey, and others.

Progress continued during FY 88 in the production and
fielding of Army command, control, and communications systems. A deep operations
asset that the Army and the Air Force are developing, the joint Surveillance and
Target Attack Radar System (JSTARS), permits observation of enemy deployment 100
kilometers and beyond. Officials anticipate initial production of the Army's
part of JSTARS, the Ground Station Module, in mid-FY 89. The Army Tactical
Command and Control System (ATCCS) integrates five battlefield functional area
command and control automated systems-Maneuver Control System (MCS); Advanced
Field Artillery Tactical Data System (AFATDS); All Source Analysis System (ASAS);
the Forward Area Air Defense Command, Control, and Intelligence (FAADC2I)
system; and the Combat Service Support Control System (CSSCS). MCS hardware
production began in 1983, and nondevelopmental item equipment deliveries ensued
in FY 88. Developers expect initial fielding of AFATDS hardware in FY 94.
Testing of ASAS, which connects with the Air Force Enemy Situation Correlation
Element, continued in FY 88 with fielding expected in the late 1990s. FY 88 and
anticipated FY 89 activities for FAADC21 include continuation of systems
integration and software development and competitive selection of a
nondevelopmental ground base sensor. Deliveries of the two-person-portable
Tactical Army Combat Service Support Computer System, the first CSSCS device
fielded, totaled about 8,000 by December 1988.

Three primary communications/data systems support ATCCS.
Fielding of Mobile Subscriber Equipment, the Army's new common user voice, data,
and facsimile communications system, began at Fort Hood, Texas, in February
1988. Early reports on the Single Channel Ground and Airborne Radio System, the
Army's new VHF FM combat net radio initially delivered to Army units in FY88,
indicated favorable performance. Low-rate initial production of the

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Army Data Distribution System, an automatic tactical data
distribution system, started in 1988. Designed for total air defense coverage to
the division area, the Forward Area Air Defense System (FAADS) consists of five
major elements. Full-scale development of its command, control, and intelligence
component, ground/aerial sensors with a data processing/ distribution system,
proceeded in FY 88. The Army selected the air defense antitank system (ADATS) as
the FAADS line of sight-forward-heavy weapon in November 1987. With full-scale
development planned for FY 89, the fiber optic guided missile mounted on both
the HMMWV and the MLRS chassis acts as the FAADS non-line of sight component.
The Army procured sixty Pedestal-Mounted Stingers, Stinger missiles erected on
HMMWVs for the FAADS line of sight-rear weapon, by the end of FY 88. FAADS
combined-arms initiatives in process included installing air-to-air Stingers on
the OH-58C/D AHIP helicopter and producing antihelicopter ammunition for tanks.

Army mobilization organization and procedure profited from
several FY 88 events. Creation of the Mobilization and Operations Directorate
within the Total Army Personnel Agency assigned one Army agency responsibility
for designing and executing mobilization policy. Conducted annually, the
Individual Ready Reserve screening program successfully contacted 116,852
soldiers from a target population of 187,231. Some 13,500 reserve component
personnel assigned to the First Army area participated in a large mobilization
exercise, Operation GOLDEN THRUST, in November 1987. Soldiers who in-processed
and prepared for overseas replacement at twelve mobilization stations, scattered
from New England to Virginia, learned valuable lessons in mobilization
procedures. PROUD SCOUT, a JCS command-post mobilization exercise also conducted
in November, evaluated the readiness of the armed services for mobilization and
multiple theater deployment. It indicated considerable progress since Exercise
NIFTY NUGGET of 1978. Positive Army developments included creation of the Army
Mobilization and Operations Planning System and preassignment of individual
reservists and retirees to specific jobs. Less positive findings showed only
moderate progress for Army mobilization station operations and the industrial
base, while training base expansion has realized limited progress since 1978.

Deployment and sustainment resources made either marginal
gains or suffered losses during FY88. Defense Department officials expect the
C-17 Airlifter program to provide 27 million ton miles per day for strategic
airlift with construction of 210 C-17s by the year 2001. FY 88 funds provided
for construction of the first two

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C-17s with delivery scheduled for 1990. Strategic sealift saw
limited gains, but delivery of four logistics support vessels supplemented the
Army's offloading assets. The Army received about half of its war reserve stock
funding request in FY 88, and stocks remained at about half of anticipated
wartime needs. In a favorable sustainment development, the Army fielded 14 of
its new modular combat hospitals, deployable medical systems, during the year.
In 1987 Defense Department officials approved production of the Army's Inland
Petroleum Distribution System (IPDS), and Army logisticians expect to procure
more than 40 percent of the CINCs' IPDS requirements by FY 90. Program 7, or
Army central supply, transportation, and maintenance operations, endured further
funding declines. Purchasing power for central supply and transportation dropped
7 percent from FY 87. Materiel maintenance secondary items got money for more
than 90 percent of requirements, while end items received only 60 percent.